Assertion (A): Fiscal deficit is greater than budgetary deficit. Reason (R): Fiscal deficit is the borrowings from the Reserve Bank of India plus other liabilities of the Government to meet its expenditure.

1. Assertion (A): States that Fiscal deficit is greater than budgetary deficit. The budgetary deficit concept used earlier included only certain types of financing (like treasury bills and drawing down cash balances). Fiscal deficit represents the total borrowing requirement of the government (Total Expenditure - Total Receipts excluding borrowings). Since the early 1990s, India moved towards using fiscal deficit as the key indicator. Generally, fiscal deficit encompasses a broader measure of the government's deficit financing needs compared to the older concept of budgetary deficit. So, Assertion (A) is true. 2. Reason (R): Defines Fiscal deficit as borrowings from the Reserve Bank of India plus other liabilities of the Government to meet its expenditure. This is an incomplete definition. Fiscal deficit equals total borrowings and other liabilities, which includes borrowings from RBI, market borrowings, external debt, etc. While borrowings from RBI are part of it, the definition given isn't precise or complete. It doesn't capture the essence (Total Expenditure - Non-debt Receipts). Therefore, Reason (R) is false. 3. Conclusion: Since Assertion (A) is true and Reason (R) is false, the correct option is (C).